Euro (EUR) may retest, and potentially edge above 1.1700; it does not appear to have enough momentum to threaten 1.1720. In the longer run, EUR is likely to trade with an upward bias; it is unclear for now if it can reach 1.1720, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR is likely to trade with an upward bias

24-HOUR VIEW: "EUR soared to a high of 1.1668 two days ago. In the early Asian session yesterday, when EUR was at 1.1655, we highlighted that 'the advance appears excessive but there is no indication of a slowdown just yet.' We were of the view that 'there is a chance for EUR to test 1.1685.' The subsequent price movements did not quite turn out as we anticipated. EUR rose more than expected to 1.1698, pulled back sharply to 1.1609 and then rebounded to close largely unchanged at 1.1665 (+0.05%). Today, the slight increase in upward momentum may lead to EUR retesting, and potentially edging above the 1.1700 level. Based on the current momentum, EUR is unlikely to threaten the major resistance at 1.1720. On the downside, support levels are at 1.1650 and 1.1630."

1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (07 Aug, spot at 1.1655). As highlighted, EUR 'is likely to trade with an upward bias.' However, we pointed out that 'it is unclear for now if it can reach 1.1720.' Looking ahead, should EUR break clearly above 1.1720, it could lead to EUR rising toward 1.1770. To sustain the upward bias, EUR must hold above the ‘strong support’ level at 1.1585 (level was at 1.1560 yesterday)."